LeverFi is an on-chain leverage trading protocol using yield-bearing collateral. The project claims to allow users trade and earn at the same time with up to 10x leverage. Traders deposit collateral such as BTC, ETH, Curve-LP, Uni-LP and more to trade changes in asset prices at up to 10x leverage. Collateral are deposited to farming protocols, allowing traders to earn yields and leverage trade at the same time.
LeverFi is powered by $LEVER, an Ethereum-based governance token. To participate in governance, users are required to lock up $LEVER for a period of between 6 months to 48 months, in order to receive $xLEVER tokens. Each $xLEVER represents one vote in governance.
Users who undertake longer lockup periods will receive more $xLEVER for the same number of $LEVER tokens. This means that token holders with a smaller holdings and longer lockups can have comparable voting power with token holders who have larger holdings, but shorter lockups.
Users can stake $xLEVER tokens for a share of protocol rewards, which are in the form of $ETH and $LEVER.